THIS PAPER DESCRIBES LOCATIONAL PATTERNS OF FIRMS WHICH MINIMIZE THE TOTAL DISTANCE OF COMMUTING AND BUSINESS TRIPS. THREE MODELS ARE DEVELOPED IN WHICH A CITY IS SQUARE AND OFFICE WORKERS ARE DISTRIBUTED UNIFORMLY. IN THE TWO MODELS THAT THE NUMBER OF BUSINESS TRIPS FROM A FIRM TO ALL FIRMS ARE ASSUMED TO BE SAME, AN OPTIMAL LOCATIONAL PATTERN IS EITHER CENTRALIZATION OR DISPERSION. IN THE THIRD MODEL UNDER THE ASSUMPTION THAT BUSINESS TRIPS DECLINE AS THE DISTANCE BETWEEN FIRMS, THERE EXIST OPTIMAL SOLUTIONS THAT FIRMS CONCENTRATE ON SEVERAL DISTRICTS. THE IMPACT OF A LOCATIONAL PATTERN ON THE TOTAL DISTANCE IS ALSO SHOWN IN THE THIRD MODEL. IT VARIES CONSIDERABLY ACCORDING TO THE RATIO OF THE NUMBER OF COMMUTING AND BUSINESS TRIPS AND TO THE ACCESSIBILITY BETWEEN FIRMS.
